COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION-2, NEW DELHI vs. HCL POLAND SP. Z.O.O

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ITA - 90 / 2025HC Delhi16 April 20252 pages
For Petitioner: SUNIL KUMAR AGARWAL
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court admitted the appeal for hearing on two specific questions of law. These questions relate to the classification of income as FTS under Section 9(1)(vii) and the nature of services rendered by the assessee and HCLT.

What were the facts?

The Revenue appealed a Delhi High Court order admitting an appeal against an ITAT decision. The appeal concerns whether the respondent's income is Fee for Technical Services (FTS) taxable in India. The core issue is whether services were rendered to a client located outside India.

What were the issues?

Whether the income earned by the respondent is Fee for Technical Services taxable in India, and if the services were jointly rendered by HCLT and the respondent to foreign customers.

Which sections of the Income-tax Act were involved?

Section 9(1)(vii)

AI-generated summary — verify with the full judgment below

$~88 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 90/2025 COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION-2, NEW DELHI .....Appellant Through: Mr Sunil Kumar Agarwal, SSC, Mr Shivansh B Pandya, Mr Viplav Acharya, JSCs and Mr Utkarsh Tiwari, Advocate. versus HCL POLAND SP. Z.O.O .....Respondent Through: Mr Aditya Vohra, and Mr Shashvat Dhamija, Advocates. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R % 16.04.2025 CM APPL. 21786/2025(condonation of delay) 1. For the reasons stated in the application, the delay of 331 days in filing the above captioned appeal is condoned. 2. The application stands disposed of. CM APPL. 21787/2025(exemption) 3. Exemption is allowed, subject to all just exceptions. 4. The application stands disposed of. ITA 90/2025 5. The learned counsel for the parties’ state that connected appeal being ITA No.65/2025 Commissioner of Income Tax International Taxation-2, New Delhi v. HCL Great Britain Ltd involving similar issues in respect of prior assessment year has already been admitted vide order dated This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:03:41

17.03.2025. 6. In view of the above, the present appeal is admitted on the following two questions: - “1. Whether on the facts and circumstances of the case and in law, the Hon’ble ITAT has erred by not appreciating that the income of the Respondent-assessee is in the nature of Fee for Technical Services/Fee chargeable to tax under Section 9(1)(vii) of the Income Tax Act, 1961 for Included Services (FTS/FIS) rendered by it to HCLT for the business of HCLT carried on by HCLT in India for a client, which in this case, is located outside India? 2. Whether on the facts and circumstances of the case and in law, the Hon’ble ITAT has erred in holding that both HCLT and the Respondent-assessee are jointly rendering services and therefore, it is a case of revenue sharing between HCLT and the Respondent assessee qua the foreign customers of HCLT?” 7. List for hearing along with ITA Nos. 552/2024, 65/2025, & 89/2025 on 16.07.2025. VIBHU BAKHRU, J TEJAS KARIA, J APRIL 16, 2025 M Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:03:41

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